Dhaka Chamber of Commerce & Industry (DCCI) on Wednesday submitted a set of proposals for FY2026-27 national budget to NBR, calling for tax relief, automation, and wide-ranging reforms to improve the business climate and strengthen revenue mobilisation.
The proposals were formally presented at the NBR in the morning as part of the chamber’s recommendations ahead of the upcoming national budget.
The chamber prepared the recommendations focusing on strengthening revenue collection capacity, creating a business-supportive environment, lowering the tax burden, and promoting investment in productive sectors to boost employment.
DCCI said it submitted a total of 54 proposals for inclusion in the FY2026-27 national budget, highlighting 16 key recommendations covering income tax, VAT, customs, automation of tax administration, and measures to facilitate businesses and investment.
The chamber emphasised expansion of the tax base and simplification of tax structure as core objectives. It proposed business-friendly tax policies, automation of tax administration, reforms in value-added tax (VAT) systems, protection for local industries and simplification of import duty and tariff structures.
Among the major income tax proposals, DCCI recommended increasing the tax-free income threshold and restructuring tax slabs.
Under the proposal, income up to Tk 500,000 would remain tax-free, followed by 5% tax on the next Tk 200,000, 10% on the next Tk 300,000, 15% on the next Tk 400,000, 20% on the next Tk 500,000, and 25% on the remaining income.
The chamber argued that the change would encourage new taxpayers to enter the tax net and help expand the tax base.
It also said the revised structure would ease the burden on low-income and lower-middle-income earners and stimulate economic activity.
DCCI proposed reducing the tax rate for non-listed companies from 27.5% to 25%, particularly for firms complying with banking transactions and other compliance requirements.
It also recommended maintaining strict revenue reporting conditions, requiring all receipts to be received through banking channels or digital payments.
The chamber noted that while only about 350 companies are listed, the number of non-listed companies is significantly higher, and reducing the tax rate would encourage business expansion and motivate firms to move toward listing.
It said Bangladesh’s tax-GDP ratio remained low at 6.7% in FY2025 and a large portion of economic activity remained outside the formal system.
To address this, DCCI proposed automation of tax administration, data integration and digital filing systems.
It suggested integrating databases including national ID, banking, trade licence, electricity and gas connections, vehicle registration, mobile financial services, and land ownership through a central API to automatically identify potential taxpayers and bring them under the tax net.
DCCI recommended introducing an automated e-corporate tax return system, citing that corporate tax filing currently involves manual processes that are complex, time-consuming and prone to errors.
The proposed platform would allow online filing, appeals and refunds, and enable automated bank transfers through BEFTN for tax refunds, reducing time and compliance costs.
The chamber proposed reducing withholding tax on interest from securities to 5% and gradually exempting it entirely. It also recommended allowing taxpayers to adjust or claim refunds where excess tax is deducted.
Similarly, DCCI proposed reducing withholding tax on interest from corporate deposits from 20% to 10%, with provisions for adjustment against final tax liability.
It said the move would ease pressure on companies and support investment, particularly for small businesses.
DCCI recommended restoring provisions similar to the Income Tax Ordinance 1984 to allow adjustment of business losses against other income, stating that current provisions increase tax burden on businesses.
The chamber also proposed gradual abolition of surcharge on net wealth over three to five years instead of immediate withdrawal, arguing this would reduce “tax on tax” and ensure fairness for taxpayers with high assets but low income.
The chamber proposed reducing minimum tax on turnover from 1% to 0.25% for individuals and 0.60% for entities other than individuals. It argued that minimum tax based on turnover increases business costs and should eventually be abolished so tax is levied only on profits.
On VAT issues, DCCI proposed withdrawing the increase in
advance tax on commercial imports from 5% to 7.5% and maintaining it at 5%, with gradual removal in future.
The chamber said the higher advance tax increases working capital requirements, affects cash flow and ultimately raises consumer prices.
DCCI also recommended abolishing the Tk 50,000 cap on VAT refunds and allowing full refund of negative net amounts through automated systems. It said removing the ceiling would increase working capital and support production and business expansion.
The chamber proposed complete online VAT processes, including appeals, credit refunds and risk management, through the e-return portal. It also recommended a single-step VAT refund system to reduce administrative delays and improve cash flow.
DCCI suggested introducing a national mobile application for VAT collection, allowing sellers to generate VAT receipts in real time using BIN numbers. The data would automatically be transmitted to NBR systems and shared with buyers via mobile or email.
The chamber said such an app would increase transparency, reduce tax evasion and boost revenue collection.
DCCI recommended automating customs refunds by transferring refund amounts directly to bank accounts through BEFTN or EFT instead of manual cheque payments. It said automation would reduce harassment and improve service efficiency.
The chamber also proposed uniform customs valuation for stearic acid and similar chemicals instead of country-specific valuation rates. It said differing valuation based on source country creates market distortion and unfair competition.
DCCI said its proposals aim to expand the tax base, improve compliance, reduce business costs, encourage investment, enhance automation, and strengthen revenue mobilisation.
The chamber expects the recommendations, if implemented, to support economic growth, improve competitiveness and create employment in the upcoming fiscal year.